Which of the Following Best Describes the Impact of Technological

question 117

Multiple Choice

Which of the following best describes the impact of technological change on output?

• A) It creates a limited amount of output.
• B) It creates an unlimited amount of output.
• C) It reduces the labor needed to produce a given amount of output.
• D) It increases the labor needed to produce a given amount of output.
• E) Technology does not cause an impact on output.

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Definitions:

IFRS

International Financial Reporting Standards, a set of global accounting guidelines that govern how company's financial statements are prepared.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specified periods rather than continuously.

Gross Profit Rate

The ratio of gross profit to net sales, showing the percentage of revenue that exceeds the cost of goods sold.

Sales Returns and Allowances

Accounts that reduce the total gross sales revenue due to products being returned by customers or allowances for damaged goods.